(a) Determine the FIXED- AND VARIABLE-COST COMPONENTS using the HIGH- LOW METHOD.

(b) Calculate the total maintenance cost for month of July if Abu Luqman Industries used 9,250 total machine hours.

QUESTION 1 (5 MARKS) The controller of Abu Luqman Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Total Total Month Maintenance Costs Machine Hours January $2,750 3,500 February 3,000 4,000 March 3,600 6,000 April 4,500 7,900 May 3,200 5,000 June 5,000 8,000